Whirlpool 2004 Annual Report Download - page 8

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Whirlpool's global operating platform is the foundation for
achieving best-in-class cost structure, product quality and asset efficiency
Our global operating platform provides the foundation of
Whirlpool's differentiated value creation strategy. By
effectively managing the entire supply chain with a global
mind set–from procurement and product development to
manufacturing and distribution–we are continually
realizing the benefits of higher levels of productivity and
quality. These capabilities allow us to simplify processes,
shorten development cycles and better utilize assets, which
helps open up additional opportunities to create
innovation and value for our trade partners and customers.
Our platform integrates Whirlpool's global
manufacturing network, which includes production
capacity in low-cost regions worldwide. In 2004,
Whirlpool announced significant investments for its
facilities in Mexico and Poland, as well as in the United
States, to speed new kitchen and laundry innovations to
customers throughout North America and Europe.
Increasing levels of exports from our existing production
facilities in China, India, Central Europe and Brazil are
allowing us to expand into new markets and improve
product mix within our established markets.
Quality and productivity remain vital value creating
levers for the company and are a key focus of our global
operations. Operational Excellence, our Six Sigma
process, and Lean Manufacturing are the tools we use
across the enterprise to continually improve productivity
and sustain cost savings.
Whirlpool is continuing to build toward the best-in-
class cost position by focusing on training; pursuing
global sources of commodities and components;
optimizing the right global mix and location for our core
manufacturing, technology and design capabilities;
outsourcing non-core processes as appropriate; and
executing an effective overall global supply chain.
Looking ahead over the next several years, the
contribution from this strategic part of our business will
continue to evolve and grow. For example, we expect
technology capabilities and resources to increase
25 percent without raising current cost levels, capital
efficiency to increase 25 percent, and fixed-asset turnover
to improve 30-to-50 percent.
The most important contribution, however, is the role
that the global operating platform will continue to play as
the foundation from which our brands create and deliver
differentiated value.
Whirlpool today operates an integrated global supply chain that's directly tied to designing, producing
and delivering the best cost and highest quality products to customers in each market we serve.
Whirlpool's Manufacturing Network Creates Global Scale
Whirlpool's global manufacturing footprint enables efficient and effective use of resources and flexibility of product distribution.
The network is "best in class" for low-cost manufacturing, quality and safety. Transregional sales have doubled in the past five years,
resulting in more than six million products distributed from Whirlpool manufacturing and technology centers in 2004.